VinFast Acquires Battery Manufacturer VinES
VinFast Acquires VinES Shares to Provide Cost Advantage in Electric Vehicles
Vietnam-based electric vehicle manufacturer VinFast Auto announced that it will acquire 99.8 percent of the shares of battery manufacturer VinES. This acquisition will help VinFast reduce battery costs in electric vehicles and achieve greater integration in the production value chain.
VinES is a company owned by Pham Nhat Vuong, the founder of Vingroup, Vietnam's largest company. Vingroup, same zamHe is also the main supporter of VinFast. VinFast was founded in 2017 and started producing electric vehicles in 2021. The company receives ongoing financial support from its founder, Vuong.
VinFast stated that it would not make any payments to acquire VinES other than assuming interest payments on Vuong's existing debts. After the acquisition, VinFast will also have rights and obligations over all assets of VinES.
VinFast Aims to Control Battery Technology and Supply Chain
“The acquisition of VinES will help VinFast control battery technology and supply chain, thereby optimizing operating expenses and enriching the technology content in our electric vehicles,” VinFast global CEO Thuy Le said in a statement.
VinFast aims to save 5 to 7 percent on battery costs in electric vehicles. This savings will contribute to the company increasing its competitiveness in the electric vehicle market.
However, in the short term, VinFast's costs for battery R&D and factory operations are expected to increase. The company has plans to establish kit assembly facilities in nickel-rich Indonesia for battery production. In her statement to analysts last month, Thuy Le stated that they planned to purchase VinES in order to benefit from this material for battery production.
VinFast Continues to Grow in the Global Electric Vehicle Market
VinFast began trading on the Nasdaq exchange in August and continues to grow in the global electric vehicle market. The company plans to enter the US and Canadian markets in 2023.
VinFast postponed its European launch due to the chip crisis. The company's CEO, Thuy Le, said that this situation will not affect the company's long-term goals.
VinFast is acquiring VinES to gain more control over battery technology and supply chain in electric vehicles. This acquisition will help the company increase its cost advantage in electric vehicles and increase its competitiveness in the global market.